Dance Music Business Resource

Distribution

In order to best understand distribution, you should take a look at the listings and/or websites from the distributors themselves. You can access them via the web at the addresses listed below. This shows descriptions of each record with wholesale prices. US domestic usually sells for 3.49 to 4.00. You sell it to them for 2.75 to 3.25. There are exceptions, try not to be one of them for now. If you press on more expensive vinyl and need to charge more, the distributor will probably have to order less, so be wary.

Getting picked up is not neccessarily easy. There are too many labels pushing too much product right now, and the stores and the distributors can only handle a certain amount of it. The decision to pick up your label may not be based entirely on the quality of the record you are showing them. In the final estimation, they want to know that they can sell your records and not get stuck with unsold crates. They also need to know that you know what you are doing for the long run . They look to work with people who have some kind of established profile so that the records stand out more. Offshoots of established labels are far easier to start then labels from out of nowhere.

Distributors can be very very political. They want to know who else you are going through. They want to be one of the few, but not the only ones with your product. The better your relationship with the distributor, the more records you are going to be able to sell, and the more likely it will be that you will get paid. Non payment happens. Its a sticky situation because you don't want to offend them if you want to continue dealing with them.

Sometimes a distributor will give you an estimation of what they will buy from you based on a white label or demo tape. Then when the records are pressed they cannot/will not order that amount. Don't be too surprised if that happens. At least you will have some around for re-orders. Factor that into your equation about how many to press.

The US distributors here buy from US labels and send most of it to Europe, selling it to stores or other distributors. They also buy from European labels and distributors and sell it to US stores. Many US labels deal directly with European distributors. You should learn both sides of the pond.

Some distributors (eg. Neuton) offer exclusive distribution. This means that they will sell your records to other distributors and stores. They are usually in a position to plug your record in a more personal way than just listing it on the FAX. Usually these are the records that have the distributor info listed on the sleeve (especially Neuton, SRD etc.) This can often be a good situation. Exclusive distribution from a small company won't be worth your while unless......

Sometimes an organization (eg. the old Intellinet) is referred to as a distributor, but in fact works only with its own internal labels. They distribute these labels to the "real" distributors who then distribute it to stores. This is a smart thing. Many situations like this, the Uber-label pays for pressing and does all the promotional work. (P&D deal : pressing and distribution) This saves costs and makes sure accounts get paid. I would think it would be a good tactic for small labels to bond together to act as one organization for certain aspects of the business. Like talking to the real distributors.

The lists cover various countries. You can go directly to any European distributor and do business. It is oftentimes easier to deal with the distributor in your own country, but not neccessarily the most effective (well, not neccessarily not the most effective either).